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Refer to the Information Provided in Scenario 10

Question 159

Multiple Choice

Refer to the information provided in Scenario 10.1 below to answer the questions that follow.
SCENARIO 10.1: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up. Refer to the information provided in Scenario 10.1 below to answer the questions that follow. SCENARIO 10.1: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up. -Refer to Scenario 10.1. What is the money multiplier in this economy? A) 10 B) 16.67 C) 20 D) 50
-Refer to Scenario 10.1. What is the money multiplier in this economy?


A) 10
B) 16.67
C) 20
D) 50

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